Oregon Cap & Trade Proposal Could Lead to Sharp and Immediate Increase in Natural Gas Bills

SALEM, Ore., Feb. 26, 2019 /PRNewswire/ -- The Northwest Gas Association (NWGA) released an analysis that shows significant impacts for Oregon natural gas consumers from the climate action proposal being debated by the Legislature. As currently drafted, House Bill 2020 ? also known as "Cap and Trade" will raise the average Oregon family's gas bill by 12% in the first year of the program and will eventually raise bills by 40% in 2035. Commercial gas consumers (e.g. restaurants, schools, hospitals, etc.), can expect increases of 14 percent initially, rising to 46 percent by 2035.

"The problem is not with cap and trade," said NWGA Executive Director, Dan Kirschner. "The problem is that this cap and trade proposal, unlike any other that has been enacted, treats natural gas households and small businesses differently than other energy users."

As currently drafted, HB 2020 provides electric customers with free allowances for the first ten years of the program, even though they will emit just as much greenhouse gas (GHG) through the combustion of coal and natural gas to generate electricity as all residential and commercial (R/C) natural gas customers combined. Residential (except for low-income) and commercial natural gas consumers do not receive similar consideration in the current proposal.

"Emissions are emissions," Kirschner said. "This bill would compel natural gas consumers to pay more than their fair share of reducing the state's GHG emissions." He went on to note that Oregon's R/C natural gas consumers have already contributed to limiting the state's GHG emissions profile. The average natural gas home emits 29 percent less GHG than it did in 2000; the average business, 19 percent less.

The NWGA maintains that natural gas can and should be a critical part of a well-considered carbon reduction program. To that end, the NWGA adopted a set of principles for a successful climate action program. Those principals can be accessed by visiting: https://bit.ly/2NmpkP7.

The Northwest Gas Association represents the three natural gas utilities that serve warmth and comfort to almost 2.5 million Oregon residents and productive energy to more than 100,000 Oregon businesses, as well as two pipelines that link Oregon to natural gas supply regions in Alberta, British Columbia and U.S. Rocky Mountain states. Visit www.nwga.org for more information.

1914 Willamette Falls Drive, Suite 260
West Linn, Oregon 97068
t:  503.344.6637 
f: 503.344.6693
www.nwga.org  - t: @nwgas

CONTACT: Northwest Gas Association
Dan Kirschner, (503) 344-6637, [email protected]

SOURCE NW Gas Association